Permian Shale Drilling Shrinks at Fastest Pace in Three Years

image is BloomburgMedia_RZYMLUT0G1KW01_26-08-2023_06-00-17_638286048000000000.png

Explorers in the Permian Basin pulled back on rig use at the fastest pace in three years as the world’s most prolific shale basin shrinks amid consolidation and the slow return in oil demand.

  

Rigs targeting both crude and natural gas in the West Texas and southeast New Mexico region declined by 7 to 320 this week, according to data released Friday by Baker Hughes Co. It’s the biggest weekly drop in the Permian since June 2020. 

Drillers have been dialing back US activity as growth in global oil demand returns slower than executives were expecting. Public producers have also been cutting after buying their closely held rivals in order to keep a lid on spending growth and return profits to shareholders.

©2023 Bloomberg L.P.

By David Wethe

KEEPING THE ENERGY INDUSTRY CONNECTED

Subscribe to our newsletter and get the best of Energy Connects directly to your inbox each week.

By subscribing, you agree to the processing of your personal data by dmg events as described in the Privacy Policy.

More oil news

BloomburgMedia_STST8RDWLU6800_29-03-2025_05-00-10_638788032000000000.png
S&P 500 Sinks 2% as Economic Fears Spur Bond Rally: Markets Wrap
BloomburgMedia_STT1J7T0G1KW00_28-03-2025_06-13-48_638787168000000000.jpg
Oil Poised for Third Weekly Gain Ahead of More Trump Tariffs
BloomburgMedia_STR5DWT1UM0W00_27-03-2025_05-00-13_638786304000000000.jpg
Oil Holds Gain as US Posts Biggest Drop in Stockpiles This Year
BloomburgMedia_STPB1HT1UM0W00_26-03-2025_05-20-28_638785440000000000.jpg
Oil Holds Steady as Report Points to Big Drop in US Stockpiles

Back To Top